Insurance is a part of life that we will all encounter at some point. The positives far outweigh the initial negatives as well, since we may never know when life happens to manifest into an emergency. The same sentiment can apply to your business and overall company practice.
Due to the plethora of issues that can potentially affect your business, there are different types of business insurance available. You may be wondering about what does business insurance cover, although the specifics may vary depending on your situation. Each type of insurance covers a specific situation, so that you’ll be able to rest easy if a dire situation occurs.
It is important to note that not all business insurance plans were created for a ubiquitous purpose. For your respective company, you’ll have to decide which coverage is most appropriate given your circumstances. However, it is an important aspect of your company, and a plan should be implemented in order to protect yourself at all costs!
If you looking to learn more about what does business insurance cover, here are seven different types of business insurance:
1. Property Insurance
In the most general of senses, your business will most likely operate in some sort of physical space. This can come in the form of a detached office space, or can be a part of a larger complex or building. Either way, the property has to be covered by business insurance in some capacity.
Property insurance covers the overall structure, in addition to any supplementary property related to the business. This also extends to covering related furnishings, equipment and pertinent inventory. You never know when potential disaster may strike, so having the proper business insurance in place will cover the basics.
Liabilities have a big role in what business insurance covers. Having your business covered by professional liability insurance will help tremendously in the event of error. We are all human, and are liable to having lapses in judgment related to our business practices. However, sometimes these mistakes can be grand in scope, and can be detrimental overall.
Liability insurance helps ensure that costs related to errors in servicing are covered. These types of insurance help in the event that a business gets sued by a client, who claims that they have lost thousands of dollars due to your company’s poor judgment. In this scenario, having liability insurance would defend the business throughout the subsequent, legal process.
3. Worker’s Compensation
In keeping in line with the subject of error in judgment, sometimes, your workers may become injured on the job. Should this happen, having worker’s compensation insurance will help cover the relevant costs pertaining to the worker’s inability to return to their job.
Like liability insurance, worker’s compensation coverage will defend your company if your worker decides to sue. This means that all legal fees will be covered throughout the ensuing process. Your business should have all the equipped tools in order to defend itself in the event of conflict!
4. Commercial Auto Policy
If there is an auto-related accident associated with your business, having the right commercial auto insurance in place will pay dividends. Sometimes, the judgment of drivers on the road can be hampered by a myriad of factors. If you, or an employee, is injured in a car accident because of those factors, the costs from the resulting accident will essentially be covered.
5. Commercial Flood Insurance
Disasters and emergencies aren’t just limited to human-associated action either. The weather may be a prime reason for your business to get physically damaged. If this happens, having the right commercial flood insurance will cover the basics and your business.
For starters, the physical location of the affected business will be protected. This type of business insurance, however, also extends to flooding that results from melted snow or heavy rainfall. If the ensuing floodwater damages the property’s basement, for instance, having commercial flood insurance will help with the general repairs.
6. Surety Bonds
This type of business insurance guarantees that compensation is met, regardless of any diversion in commitment. There may be certain factors preventing a business from not reaching a certain goal or quota, stopping schedules from being followed on time. If this happens, and the project contracted between all parties is not met, the insurance will cover overall payment.
7. Fidelity Insurance
Even though you may hire what you believe to be the best of talent, some employees may actually be covertly dishonest. Fidelity insurance helps with covering financial loss that results from employee theft or fraud. If your worker is caught in the act of stealing, or selling unauthorized data, you will be reimbursed monetarily should it affect your operations.
This is why fidelity insurance is also known as fidelity bonding. The bond returns compensation to the business owner for the damages caused by deceptive employees. No workplace situation is perfect, but you can be protected in the event that a worker turns out to be dishonest.